TopPop’s current facility in Marlton, N.J., produced roughly 40 million units in 2021, the new 65,000 sq. ft facility could eventually produce 150 million units for 2022. The facility will produce frozen ice-pops, stand-up flexible pouches, single-serve shots, organic juice pops, dog treats, and more. The new facility has received all necessary licensing and is expected to be at full production by the end of the first quarter.
“We were excited to showcase our facility to our investors and to media so they could witness the state-of-the-art technology and innovation of our manufacturing capabilities,” said Tom Martin, President & COO of TopPop. “We felt that it was critical that we adopt sustainable business practices, and during the tour we were able to demonstrate our eco-friendly flexible packaging solutions for RTD, RTF and other applications. We are able to use less material, less energy and less waste for our products, which is more efficient and lowers costs. Additionally, our current facility runs 100% on solar power and we expect our newest facility to do so in the future. Demand has been growing and we plan to have the newest facility running at full production in Q1.”
The Distilled Spirits Council of the U.S. found that premixed cocktails were the fastest-growing spirits category in 2021 and saw sales increase 42.3% to $1.6 billion from a year earlier. Furthermore, the council reported that canned cocktails captured a significant market share from beer and hard seltzer.
Although premixed cocktails remain a small fraction of the overall spirits industry, they have rapidly gained ground. Mainstays like beer continue their years-long downward trend, while hard seltzer growth has stagnated.
As Iconic continues to see growth opportunities for its RTD and RTF products, many of the most prominent players in the industry have begun investing valuable resources in premixed cocktails, either through their own brands or through acquisitions. A recent CNBC report noted that Anheuser-Busch InBev acquired Cutwater Spirits, and major brands like Ketel One and Crown Royal launched RTD offshoots. Diageo has also invested $110 million in expanding their RTD facility.
“Although not surprising to us, it was reaffirming to see that premixed cocktails were the fastest-growing spirits category in 2021,” said Iconic Chief Executive Officer Larry Romer. “RTF, RTD and premixed cocktails are booming right now as the largest alcohol brands are investing heavily in this space. As such, we intend to capitalize on this trend with our RTD and RTF products. Understanding how consumer tendencies have evolved over the last few years, we believe that we are well-positioned for both near-term and long-term success. Nowadays, consumers want healthier alcohol options from companies that have sustainable practices that are better-for-the planet, and we believe that we have achieved that with our pre-made cocktails. Furthermore, 16 states and the District of Columbia have made cocktails to-go permanent. We expect these trends to translate to a higher growth potential for our TopPop RTF alcohol ice pops and our RTD cocktails.”